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Construction projects are incredibly complex, and one important aspect of them is ensuring that all parties involved are protected from any potential legal issues that may arise. One such protection is the Build Over Agreement Indemnity Insurance, which covers the cost of legal action against the construction company in the event of property damage caused during construction.
The Build Over Agreement (BOA) is a legal agreement between a property owner and a construction company that allows the latter to carry out their work on the former`s property. BOAs often relate to underground infrastructure, such as drainage systems or pipes. Indemnity insurance, on the other hand, is a type of insurance coverage that protects a policyholder from any financial loss incurred as a result of legal action taken against them.
The Build Over Agreement Indemnity Insurance cost is the amount a construction company pays to insure themselves against any potential legal action. The cost of this insurance can vary depending on several factors, including the size and complexity of the construction project, the location, and the level of risk involved.
In general, the cost of Build Over Agreement Indemnity Insurance is relatively low, especially when compared to the overall cost of the construction project. However, it is important to note that the cost can vary significantly from one project to the next, depending on the specific circumstances.
One important factor that affects the cost of BOA insurance is the level of risk involved. For example, if the project involves working on a particularly complex drainage system that is located close to a residential area, the cost of insurance may be higher than if the project were located in an industrial area with fewer potential risks.
Another important factor that affects the cost of insurance is the level of coverage required. Some construction companies may opt for a lower level of insurance coverage to save costs, while others may choose to purchase a more comprehensive policy to ensure that they are adequately protected in the event of any issues that arise.
In conclusion, the cost of Build Over Agreement Indemnity Insurance is an important consideration for any construction company working on a project that involves infrastructure located on someone else`s property. While the cost of the insurance may vary depending on several factors, including the level of risk involved and the level of coverage required, it is generally a relatively small cost when compared to the overall cost of the construction project. Ultimately, this insurance provides important protection to construction companies, ensuring that they are adequately covered in the event of any legal issues that may arise.